My Corporations professor in law school once said, “Financial advisors are nothing more than used car salesmen with more expensive suits.” Although her words may have been somewhat harsh, her comment was prescient in one particular regard — the subject of education.
Whether one sells used cars or investments, the educational prerequisites for those who sell used cars and investments are identical – there are none. Perhaps there is good reason in the case of the car salesperson, but is the same true with respect to one’s advisor? Do investors really care whether the person with whom they are entrusting their life savings ever graduated from high school or college? Of course they care.